London, United Kingdom (PressExposure) February 06, 2010 -- Despite widely held doubts that the US economy will continue to grow once government support is withdrawn, "Zen International" analysts apparently believe that figures released by the Commerce Department showing that the world's biggest economy had expanded by a more-than-expected 5.7% in the fourth quarter of 2009 will provide reason for equity bulls to raise their glasses this weekend.
Still, the Asian-based boutique broker is known for its skepticism towards the concept of a sustainable recovery without the participation of the consumer and it reminded clients that a double-dip or W-shaped recession was far more likely than the V-shaped variant that the "pump and dump" pundits are heralding.
A source close to "Zen International" said that it was highly likely that job losses in the US would continue to rise but conceded that the pace of losses had undoubtedly slowed.
The figures mean that the US economy shrank by 2.4% in 2009, its worst performance since 1946 but "Zen International" analysts are expecting that additional stimulus will be provided by the Obama administration in the event of the onset of a double-dip recession.
"Zen International" advised clients to be prepared for the equity markets to continue to shed "froth" and to keep powder dry for opportunistic stock acquisition.